Furniture companies investing in Vietnam has become an upsurge, a thorny road with both opportunities and challenges:
Investing in Vietnam Among the 115 countries and regions where foreign capital is sourced, Japan has surpassed South Korea to become the largest investor in Vietnam, with an agreement amount of US$9.11 billion, accounting for 25.4% of the total foreign investment; South Korea ranked second with an agreement amount of US$8.49 billion , Accounting for 23.7% of total foreign investment.
It is worth noting that China’s ranking has risen to fourth place, with an agreement amount of US$2.17 billion, 284 new investment projects, 83 funding projects, and 817 capital injection or share purchase projects.
China surpassed Singapore in the number of new projects, and surpassed Japan in the number of capital injections or share purchases.
In addition, according to data released by the Vietnam Foreign Investment Agency, as of 2016, the total registered capital of Chinese-funded enterprises in Vietnam reached 10.4 billion U.S. dollars. The investment fields are concentrated in processing and manufacturing. There are 916 projects in these two fields with a total value. 5.38 billion US dollars.
Vietnam’s basic manufacturing industry is still underdeveloped, but timber processing exports are developing rapidly. In the past ten years, Vietnam’s timber processing industry has increased by about 2.7 times, and it has become the fifth largest timber exporter in the world.
According to statistics, the output value of Vietnam’s wood processing industry in 2017 was 8 billion U.S. dollars, an increase of 10% over the previous year, and it is expected to increase by 20 to 25 billion U.S. dollars in the next 10 years.
In the first seven months of 2018, the output value of Vietnam’s timber processing industry was 5.3 billion U.S. dollars. If the output value continues to grow in the second half of the year, it will reach the goal of 9 billion U.S. dollars in annual export transactions.
In Binh Duong Province, 30 kilometers northeast of Ho Chi Minh City, wood processing is one of the industries that contribute the most to its economy, with an annual output value of approximately US$4 billion, accounting for half of Vietnam’s total timber exports.
The Prime Minister of Vietnam Nguyen Xuan Phuc also stated that “it is necessary to provide more support to the wood processing and forestry production industries to achieve development goals in rural and mountainous areas and create job opportunities.
According to a report from the Vietnam Forestry Administration, the country’s exports of wooden furniture products in 2016 were 5.12 billion U.S. dollars, and in the first nine months of 2017, it was 5.5 billion U.S. dollars. The furniture manufacturing industry is mainly concentrated in Ho Chi Minh City, which is also the largest industrial base in Vietnam.
Binh Duong Province has gathered more than 50% of Vietnam’s furniture manufacturers. The Binh Duong government’s goal is to build it into a “central city of the furniture industry in Southeast Asia, where people from all over the world can come here to find the latest technology in furniture manufacturing”.
Therefore, investing in the furniture manufacturing industry in Vietnam has become an opportunity. But many people want to invest and have no channels, or are afraid of missing opportunities. Then you can choose our YAXIN.
YAXIN is a consulting company that currently has offices in Ho Chi Minh City and Hanoi. YAXIN is also considered to be a Vietnamese company specializing in business information. There are many well-known practice areas in the market, such as labor and employment, banking law, taxation, purchase, sales and mergers, litigation, IPO consulting services and intellectual property. We are confident to provide our clients with the best and effective legal services.
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